Home / Business and Economy / Talon Metals Acquires Eagle Mine in $83.7M Deal
Talon Metals Acquires Eagle Mine in $83.7M Deal
20 Dec
Summary
- Talon Metals to acquire Lundin Mining's Eagle Mine and Humboldt Mill.
- Lundin Mining will receive 275.2 million Talon shares, increasing its stake.
- The deal aims to create a pure-play US nickel company with processing synergies.
Talon Metals has entered into a definitive agreement to acquire Lundin Mining's US operations, encompassing the Eagle Mine and Humboldt Mill. Lundin Mining will receive a substantial stake in Talon, comprising 275.2 million shares, valued at approximately $83.7 million. This acquisition is poised to establish Talon Metals as a prominent pure-play US nickel company, integrating the sole primary nickel mine in operation within the United States.
The transaction strategically merges Lundin Mining's operational Eagle Mine with Talon's existing Tamarack nickel-copper-cobalt project. It also incorporates Talon's extensive 400,000-acre exploration land package in Michigan, which hosts the Boulderdash nickel/copper discovery. Furthermore, Talon's proposed Beulah minerals processing facility in North Dakota is included, promising integrated resource development.
This consolidation is expected to yield significant operational synergies, particularly through the utilization of the Humboldt Mill as a centralized processing hub. Lundin Mining's shareholding in Talon will increase to 19.99% post-acquisition, and the company will have representation on Talon's newly formed board. Agreements are in place to manage shared processing and ensure long-term shareholder value while supporting local economic development.
